In September 2026, equity mutual fund inflows in India jumped by almost 31% month-on-month to Rs 38,306.55 crore, from Rs 29,328.62 crore in August, according to (Association of Mutual Funds in India) AMFI Data. The rally was despite a pullback in equity markets and fresh foreign portfolio investor (FPI) selling, suggesting that investors continued to invest in the equity schemes.

Key Highlights

• Equity mutual fund inflows rose 31% to Rs 38,306.55 crore in September, while small-cap funds attracted the highest category-wise investments.

• SIP contributions hit a record Rs 32,490 crore, but Rs 1.83 lakh crore in debt fund outflows pushed overall industry flows into negative territory.

The industry as a whole saw net flows turn negative, though, due to strong redemption from debt funds. Mutual funds saw net outflows of around Rs 1.33 lakh crore in September, after chalking up net inflows of Rs 41,368.05 crore in the previous month. In the meantime, the value of monthly systematic investments plan (SIP) contributions rose to a new high of Rs 32,490 crore, further emphasizing the need to invest systematically.

Small-Cap and Mid-Cap Mutual Funds Lead Equity Inflows

The small-cap category of funds received the top net inflow at Rs 9,039 crore followed by the small-cap value category at Rs 7,973 crore in September, as compared to Rs 5,549 crore in August. The mid-cap funds trailed with Rs 7,835 crore inflows compared with Rs 6,989 crore in the last month. The two categories combined was about 44% of total net equity mutual fund inflows.

Flexi-cap funds collected Rs 6,702 crore against Rs 5,059 crore in August, while large-and-mid-cap funds pulled in Rs 4,271 crore. Multi-cap funds garnered Rs 3,860 crore. Large-cap funds also made a comeback to positive levels with net inflows of Rs 859 crore despite getting net outflows of Rs 1,147 crore in August.

The inflows in the sectoral funds were worth Rs 1,840 crore, as against the outflows of Rs 53 crore received in the preceding month. Over these figures, the investor demand came in a variety of equity segments rather than being limited to one.

SIP Inflows Hit Record Rs 32,490 Crore in September

Systematic investment plan (SIP) inflows grew to a record Rs 32490 crore during the month of September, underlining the sustained momentum in systematic investing among investors in mutual funds.

SIPs enable the investors to invest a fixed sum in the mutual fund schemes at regular periods. This can contribute to investment discipline and to diversifying purchases according to the various levels of the market but will not remove the market risk and the certainty of returns.

Manish Mehta, Chief Business Officer, SBI Mutual Fund said that investors seemed to have taken advantage of the market downturn to invest more and average the cost of their investment. He added that SIP numbers were not seeing a significant surge, and investors' confidence in investing via SIPs in volatile markets was good.

The record contribution figure is different from net equity inflows on a monthly basis: Net equity inflows are indicative of the difference between investments and redemptions in a category, while SIP contributions are a measure of the amount of money invested via systematic plans.

Debt Mutual Fund Outflows Drag Industry Flows Into Negative Territory

Debt mutual funds saw net outflows of Rs 1.83 lakh crore in September, while in August they had net inflows of Rs 8,127.32 crore. According to AMFI data, the biggest withdrawals were from liquid funds, with Rs 95,743 crore being withdrawn, followed by money market funds, where Rs 50,846 crore were withdrawn.

The withdrawals were made at the end of the financial year's second quarter, when short-term investments may be withdrawn to fulfill the advance tax payment and other liquidity needs of the companies/institutional investors.

The negative overall redemptions were driven by institutional redemptions, which were related to advance tax and quarter-end compliance, said Manish Mehta, head of SBI Mutual Fund. The movement underscores that even when equity investment demand is solid, monthly mutual fund industry flows can move significantly.

Also Read: Equity Mutual Fund Inflows Rise 19% to Rs 29,328 Crore: AMFI Data

Gold and Silver ETFs Attract Investors as Industry AUM Declines

September also saw positive flows in the exchange-traded funds (ETFs) in which the investor is buying and selling shares based on the value of the fund's holdings. The gold ETFs were able to draw Rs 4,451 crore while the silver ETFs drew in Rs 1,974 crore. Investments in equity ETFs were about Rs 9,960 crore, indicating continued demand for passive investment products.

In the meantime, the total assets under management (AUM) of the mutual funds industry fell to Rs 82.64 lakh crore at the end of September from Rs 87.08 lakh crore in August. The decrease was not due to redemptions or net investment flows, suggesting that AUM is affected by market movements, redemptions, and net investment flows.